The KRG Council of Ministers Building
Committee to be formed
KRG orders closure of all Forex and cryptocurrency firms in Kurdistan Region
ERBIL — The Kurdistan Regional Government has ordered the closure of all Forex and cryptocurrency companies operating within the region, according to a directive issued Monday by the KRG’s Department of Media and Information.
The decision directs the Interior Ministry to take enforcement action based on guidance from the Central Bank of Iraq, which prohibits transactions involving digital currencies and electronic trading platforms. A special committee will be formed to oversee the implementation of the closures and ensure all such companies—regardless of name or structure—are shut down.
The move follows mounting regulatory pressure. In 2017, the Central Bank of Iraq banned cryptocurrency trading, citing concerns about fraud, financial instability, and consumer protection.
Earlier this year, on April 8, the Erbil General Security Directorate announced a local ban on cryptocurrency trading. Authorities said Forex and digital currency companies were operating without licenses and posed a risk to the public. “Trading in all types of electronic and digital currencies is prohibited,” the directorate said in a statement. “Forex and USDT [cryptocurrency] companies are not authorized in the Kurdistan Region or Iraq.”
The crackdown comes amid a wave of complaints from residents who reported significant financial losses after investing in unregulated digital currency and Forex schemes.
Cryptocurrencies like Bitcoin, Ethereum, and Solana are decentralized digital assets traded on blockchain platforms and are not issued by central banks. Forex trading, by contrast, involves the exchange of national currencies such as the U.S. dollar, euro, and Japanese yen.
